When must all Development Fees be paid to Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement") subject to the following terms and conditions.
- (a) The Franchise Agreement and all ancillary documents must be executed by you and your Owners and returned to us not earlier than five days and not later than 30 days after signing a lease for a Noodles & Company premises or when construction begins, whichever first occurs. If we do not receive the fully executed Franchise Agreement and payment of the Franchise Fee as required hereunder, we may revoke our offer to grant you a franchise to operate a Noodles & Company restaurant at the proposed site and may revoke our acceptance of the proposed site.
- (b) The Development Fee shall be $10,000.00 per restaurant listed on Exhibit A for each restaurant, except the Development Fee for the first restaurant developed pursuant to this Agreement shall be $35,000. All Development Fees must be paid in full on or before the day we execute this Agreement. See Exhibit A for the total amount due upon execution of this Agreement. You acknowledge and agree that no portion of the Development Fee shall be refundable for any Noodles & Company restaurants that you have failed (for any reason or no reason) to develop in accordance with the terms of this Agreement. The Development Fee
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, all Development Fees must be paid in full on or before the day the Area Development Agreement is executed. The Development Fee is $10,000 for each restaurant listed on Exhibit A, except for the first restaurant, for which the Development Fee is $35,000. These fees are non-refundable, regardless of whether the franchisee successfully develops the restaurants.
This means that a prospective Noodles & Company franchisee entering into an Area Development Agreement must have the full Development Fee amount available at the time of signing. This upfront payment secures the rights to develop restaurants within the designated area. The franchisee bears the risk of non-development, as Noodles & Company will not refund any portion of the Development Fee for restaurants not opened.
Furthermore, the Franchise Fee for the first restaurant is considered paid when the Development Fee is paid in full. For each subsequent restaurant, the first $10,000 of the Franchise Fee is also considered paid when the Development Fee is paid. The remaining balance of the Franchise Fee is due as outlined in the Franchise Agreement. This structure effectively credits the initial Development Fee payment towards the Franchise Fees for each location.
It is important for prospective Noodles & Company franchisees to carefully review Exhibit A of the Area Development Agreement to understand the total Development Fee amount due upon execution. They should also be aware of the non-refundable nature of the fee and the development schedule to avoid potential financial losses.